Reports say a wine shortage may be in the making.
A Morgan Stanley report warns that the current wine crisis is “the deepest shortfall in over 40 years of records.”
Last year, wine production dropped to its lowest levels in more than four decades.
Global production of wine has been decreasing steadily since it peaked in 2004, when wine supply outdistanced demand by more than 600-million cases.
Global wine consumption currently stands at around three-billion cases each year, with just over one-million wine producers worldwide.
But the Morgan Stanley report warns those numbers are going to change drastically in the short term: "inventories will likely be reduced as current consumption continues to be predominantly supplied by previous vintages." When wine consumption reaches the 2012 vintage, the experts “expect the current production shortfall to culminate in a significant increase in export demand, and higher prices for exports globally.”
But Bill Zacharkiw, wine writer for the Gazette, says Quebeckers shouldn't have anything to worry about.
"I don't think freak out is the proper response, I think there's a lot being made of this. You have to understand that wine production especially in Europe is based on growing seasons and Europe has been hit by some pretty nasty weather over the last couple of years, on one hand, that's one of the reasons why there's less wine being produced there," Zacharkiw said.
"My feeling is that the shortage is in the commodity price category. Many countries have had vine pull out schemes, mostly getting rid of poor growing sites. I don't think Quebeckers will be that affected by it as we are more of a 'fine wine'market," he said.
Total wine production in Europe dropped by roughly 10 per cent last year and by 25 per cent since its peak in 2004.